STORY FROM: Reinsurance & Arbitration
Reinsurance Case Stayed Due to Puerto Rican Insurer’s Rehabilitation
July 10, 2019
SAN JUAN, Puerto Rico — A Puerto Rican federal judge has stayed an action seeking reinsurance coverage for two hurricanes that hit the island in 2017, explaining that the plaintiff insurer has entered rehabilitation proceedings.
In a June 25 order, Judge Daniel R. Dominguez of the U.S. District Court for the District of Puerto Rico noted the rehabilitation order states that that "any pending lawsuit, action or proceeding in which the insurer is a party or is obliged to defend a party, be stayed for the term of 90 days.”
Accordingly, the judge stayed the action until Aug. 29....
Petition for Stay